Chinese mining firm Tianqi Lithium has raised HK$13.5bn ($1.7bn) upon listing its shares on the Hong Kong Stock Exchange, reported Bloomberg News citing parties familiar with the development.

The Chengdu-based firm sold 164.1 million shares at HK$82 each.

Cornerstone buyers comprise South Korea’s LG Chem and the state-owned China Aviation Lithium Battery.

Financial Times reported Tianqi Lithium chair Jiang Weiping as saying at a press convention final week: “Supply exceeded demand for most of the past two decades in the lithium industry, but that dynamic flipped in 2021 with gaining popularity over electric vehicles.

“We think it will be a far-reaching and long-term development.”

The offering’s joint sponsors include Morgan Stanley, China International Capital and CMB International Capital , according to Bloomberg News.

Tianqi’s secondary listing forms part of the ‘newest fundraising rush’ of Chinese firms involved in electrical automobile battery and materials productions as the country looks to boost its domestic production of these commodities.

Tianqi Lithium, which owns lithium mines in Australia, raised $110m through an initial public offering in Shenzhen in 2010.

The firm is engaged in lithium resource investment, lithium concentrate extraction and advanced lithium speciality compound production.

Last year, Tianqi Lithium and Australian miner Independence Group (IGO) completed a $1.4bn joint venture (JV ) deal for Tianqi’s Australian assets.

The JV, in which Tianqi owns a 51% stake and IGO holds a 49% interest, focuses on the existing upstream and downstream lithium assets in Western Australia.